Hub Podcasts Why Canadian LNG is crucial for Asia's energy future
Sep 19, 2025
Tatsuya Terazawa, Chair and CEO of the Institute of Energy Economics, Japan, shares insights on Japan's energy security and potential reliance on Canadian LNG. He discusses the strategic role of Canadian liquefied natural gas as a reliable energy partner for Asia, emphasizing the importance of long-term commitments involving all stakeholders. Terazawa also highlights LNG's potential to replace coal in Southeast Asia and the significance of hydrogen and ammonia in decarbonization efforts, advocating for coherent policy and financing to enhance Canada's credibility as a supplier.
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Energy Security Is Japan's Core Priority
- Japan imports nearly 90% of its energy, making energy security the overriding priority of policy.
- Energy policy balances security, cost competitiveness, and decarbonization simultaneously.
Proximity Gives Canada Strategic Value
- LNG from Canada's Pacific coast offers shorter, geopolitically safer shipping routes to Japan than US Gulf or Middle East sources.
- That proximity and route stability give Canadian LNG strategic value for Asia.
Political Stability Boosts Reliability
- Canada can offer supply stability that is less prone to US domestic political pressures and Panama Canal vulnerabilities.
- Buyers value exporters whose supply is insulated from domestic market-tied export swings.